1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
crimeas [40]
4 years ago
10

If both interest rate parity and the international Fisher effect hold, then between the forward rate and the spot rate, the ____

rate should provide more accurate forecasts for currencies in ____-inflation countries.
Business
1 answer:
trasher [3.6K]4 years ago
3 0

Answer:

The correct answer is forward; high.

Explanation:

A spot rate is the settlement price agreed in a spot contract, which facilitates the purchase and sale of a good, value or currency on the spot date, which is normally two business days after the trading date. On the other hand, a forward rate is the settlement price in a forward contract, which facilitates the purchase and sale of a good, value or currency when the terms are agreed but delivery and payment will occur at a future date.

Buyers and sellers look for a spot rate to make an immediate purchase or sale. A forward rate is considered to be market expectations for future prices. It can serve as an economic indicator of how the market expects the future to perform, while spot rates are not indicators of market expectations and are instead the starting point for any financial transaction.

Therefore, it is normal for forward rates to be used by investors, who may believe they have knowledge or information about how the prices of specific items will move over time. If a potential investor believes that actual future rates will be higher or lower than the forward rates established on the current date, it could indicate an investment opportunity.

You might be interested in
Ace Leasing acquires equipment and leases it to customers under long-term sales-type leases. Ace earns interest under these arra
sladkih [1.3K]

Answer:

$143,750

Explanation:

We have to first calculate the present value of the bargain purchase option:

PV = $200,000 / (1 + 6%)⁵ = $149,451.63

net lease amount = $790,000 - $149,452 = $640,548

PVIF Annuity due, 6%, 5 payments = 4.546

Annual payment = $640,548 / 4.456 = $143,750

3 0
3 years ago
Warby Parker, an online retailer for prescription eyewear, offers a free, try-on at home program for its customers. Customers br
goldfiish [28.3K]

Answer:

trialability

Explanation:

Since in the given situation it is mentioned that an online retailer offers for free try for his customers and the customers select five pairs theywant to try. Also they could select either for purchase or return

So here it related to the trail of its products where the customer could see whether the company product provide the satisfaction or not and according to this they take the decision whether to purchase the product or not

Hence, the last option is correct

3 0
3 years ago
Surreal Corp. has borrowed to invest in a project. The loan calls for a payment of $17,500 every month for three years. The lend
Marianna [84]

Answer:

The rate at which to discount the payments to find sum borrowed is 12.68%

Explanation:

The discount rate to be used in computing the sum borrowed can e derived from the effective annual rate formula below:

Effective annual rate = (1 + Quoted interest rate/m)^m - 1

quoted interest rate is 8.40

m is the number of months in a year when compounding is done which is 12

effective annual rate=(1+8.40%/12)^12-1

effective annual rate=(1+0.01)^12-1

effective annual rate=(1.01)^12-1

effective annual rate=1.12682503 -1

effective annual rate=0.12682503=12.68%

7 0
3 years ago
When consumers have problems with a web site, they use _____ dimensions to evaluate e-service quality.
Ivanshal [37]

When consumers have problems with a web site, they use website design, customer service, privacy, and fulfillment dimensions to evaluate e-service quality .

E-service quality measurements contain four dimensions including website design, customer service, security or privacy, and fulfillment.

Website design refers to all the elements of the customer experience which are related to the website. It  includes information quality, purchase process,  product selection, website convenience, p and system availability.

Every efficient website should contain three main contents which are information oriented and  transaction oriented  and customer oriented.  Customers do always assess the experience of them by using a website to assess an online store's overall service quality.

To know more about e-service quality here:

brainly.com/question/15153472

#SPJ4

6 0
2 years ago
Suppose the following transactions
love history [14]

Answer:

Explanation:

Consumption $  670

Investment $  0

Government Purchases $ 0

Imports $  1200 (40 bottles * $30)

Exports $  1000 (200 plugs * $5)

Net Exports $  (200). This is negative as imports are greater than exports.

Gross Domestic Product (GDP) $470.

{GDP formula : Consumer expenditure  + Investment expenditure  + Government expenditure  + Total exports  - Total imports.

GDP: 670 + 1000 - 1200 = 470}

8 0
3 years ago
Other questions:
  • _____ allow you to save money by having others prepay for your expense.
    15·1 answer
  • Midas Muffler sells franchises to prospective businesspersons who want to use the Midas name and offer Midas products. In a fran
    5·1 answer
  • Refer to Scenario 9.1. On the website, Sampson encourages users to ask questions and provide their input. He also provides conta
    6·1 answer
  • As the prices in markets change, buyers and sellers respond in different ways according to how much time they have to react. Mat
    7·1 answer
  • Common Stock is 2.5 million shares with a current price of $42 per share; the beta of the stock is 1.34; the standard deviation
    14·2 answers
  • Q 5.36: Badger Enterprises purchased aluminum from JG Metals. When Badger Enterprises recorded this transaction, they made entri
    6·1 answer
  • Define the word buffer in entrepreneurship ( business ) form .
    10·1 answer
  • NEED HELP ASAP! WILL GIVE BRAINLIEST TO CORRECT ANSWER
    11·1 answer
  • Siobhan's boss asked her to take over a project with several problems. What is the first step Siobhan should take in tackling th
    11·2 answers
  • The following data were reported by a corporation: 20,000 15,000 3,000the number of outstanding shares is:
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!